My company which consists of 3 directors and we have a loan with Credit Guarantee Corporation (CGC) about 6 years ago. Then, the loan was parked at MBB. I got a notice from the bank saying that I did not pay the bank and the bank asked to deal with CGC. So, when I called CGC, one of the officers said that they did not issue any legal actions. I was confused and I also negotiate to settled the loan since last year June 2016. Ever since then, they did not reply to me until I received another letter from Jabatan Insolvensi Malaysia (JIM) and declared me a bankrupt somewhere in November 2016

So, I called again and the officer that I dealt with passed me to another officer and claimed she is the one that handling the case. So, I started to go the loan amount with her again. On February 2017, she said that her boss already agreed to let us settled the loan at RM37,000 each. So, we requested her to issue us an offer letter to settle the loan. Up till today, there is no offer letter from them and always delaying and claim that they are waiting for final legal from their side and then they will issue us the final offer letter.

My questions are:

1. Is it true we need to wait that long just to get out the offer letter individual? We negotiate to settle the loan individually and they agreed.

2. Is there anything I can do to either speed up or requesting more discount?

Thanks for the prompt reply. Is that means there will no reply from them at all due to this issue? This is because they actually agreed by allowing us to settle the loan partially/ by individual director.

You have been bankrupted for the full loan jointly and severally. even after playing 37k, JIM will not discharge you until the other 2 pays up in full. CGC has no authority to discharge bankrupts. A bankrupt may have other debts, other creditors who filed POD. why make u a bankrupt in the first instance? The rationale is full recovery of full debt.

Thanks for the prompt reply. Initially, the loan was parked at Maybank for us to do the repayment. Then, when we are not able to do the repayment after about 5-7 years and CGC takes control. Maybank actually send us letters and I do check with MBB and the officer said the order was given by CGC. The content of the letter mentioned that my name is already published in NST for bankruptcy.

However, when I checked with CGC officer (about last year june 2016 which is also when I got the first letter from Maybank). The jokes are according to that officer that they did not issue any letter to Maybank to bankrupt people. So, I start to go with her on the settlement. Then, the whole things were delayed till I got the 2nd letter from MBB again in November 2016. Again, I checked with CGC officer and she said she is trying to nego and get approval from Management.

After wasting so much time and after I followed up with her again in Jan 2017 and she told me that she no longer handling my case and refer me to another officer. I was damn pissed and clueless. Also, I got the JIM letter at the end of JAN this year declared I'm officially bankrupt.

At the meantime, I also still negotiate with the new CGC officer about the settlement. She said as long as she did not put up POD. JIM will not take further actions like auction my property and so on. Now, my partners are willing to settle the loan and she said they are approving the loan and offer letter will be issued individually. So, we can settle the loan in 3 parts. Until today, everything is still pending for approval from management. But, she said the proposed amount of settlement is already approved and is just waiting for final stages and individual offer letters.

So, my concern is what else I can do like engaging a solicitor or something else I can do to settle the loan.